STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2011

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

NOTE 11 - STOCK-BASED COMPENSATION

In 1999, the Company adopted the 1999 Equity Incentive Plan and reserved 600,000 shares of common stock for future issuance. The plan expired in 2009.

In February 2005, the Company adopted the 2005 Equity Incentive Plan and reserved 1,500,000 shares of common stock for future issuance. The plan expires in 2015.

In December 2008, the Company adopted the 2008 Employees and Directors Commitment Stock Option Plan and reserved 1,500,000 shares of common stock for future issuance. The plan expires in 2018.

Under the Company's stock option plans, stock options may be granted to employees, officers, directors and consultants of the Company at an exercise price equivalent to at least the fair market value of the Company's common stock on the date of grant with expiration terms of not more than ten years. Options granted under the plans generally vest over a period of three years.

In September 2009, the Board of Directors ratified the cashless exercise feature contained in the Company's 2003 and 2005 Equity Incentive Plans to facilitate the exercise of stock options which expired in 2009. The remaining stock options expired in 2011. Under the cashless exercise feature of these plans, an option holder electing to exercise stock options using this feature would effectively pay for the exercise of a portion of his stock options by surrendering their rights to another portion of their stock options to affect a stock-for-stock transfer. The Company determined that the modification of the stock option plans did not result in any incremental compensation cost.

As of December 31, 2011, the Company has 2,583,989 options available for future grants.

A summary of the Company's stock option activity is as follows:

						Weighted
						Average
				Weighted		Remaining
				Average		Contractual
				Exercise		Term		Intrinsic
	Number			Price		(in years)		Value
Outstanding as of January 1, 2011		332,000		$	1.00		0.80	$	-
Granted		-			-		-		-
Exercised		(27,513	)		1.00		-		-
Forfeited/Expired		(304,487	)		1.00		-		-
Outstanding as of December 31, 2011		-		$	-		-	$	-

There were no stock options granted during the years ended December 31, 2011, 2010 and 2009.

As of December 31, 2011, the Company did not have any unrecognized compensation cost related to stock options granted under the stock option plans. During the years ended December 31, 2011, 2010 and 2009, the Company did not recognize any compensation expense related to the issuance of stock options under the stock option plans.